Leonardo DRS, Inc. reported financial results for the third quarter ended September 30, 2026, announcing a revenue of $1.066 billion for the period. This figure represents an 11% increase compared to the same quarter in the prior year. The company reported net earnings of $115 million, a 60% year-over-year increase, resulting in a net margin of 10.8%. On a non-GAAP basis, Adjusted EBITDA was $149 million, up 27% year-over-year, and Adjusted Diluted EPS was $0.46, up 59%.
The company reported a record funded backlog of $5.64 billion, which is a 21% increase year-over-year. Bookings for the quarter totaled $1.639 billion, resulting in a book-to-bill ratio of 1.5x. Management stated that the growth was driven by programs related to tactical radars, naval power and propulsion, and space sensing.
Leonardo DRS raised its 2026 guidance for Revenue, Adjusted EBITDA, and Adjusted Diluted EPS. The company now expects full-year revenue between $3.95 billion and $3.985 billion, previously guiding between $3.90 billion and $3.975 billion. Adjusted EBITDA is now expected to be between $545 million and $555 million, up from the prior range of $525 million to $540 million. Adjusted Diluted EPS is expected to be between $1.50 and $1.53, up from $1.34 to $1.39.
In other corporate actions, the company declared a cash dividend of $0.09 per share, payable on November 25, 2026, to stockholders of record on November 12, 2026. During the quarter, the company repurchased 288,633 shares of common stock for approximately $12 million.
